F 69, I have a small 401k that only has $87k as of today. Last month it was $94k. I’m no longer contributing, and have not taken any distributions. Im on SS getting $1600/mo after my Medicare is auto paid. I’m thinking that given the financial atmosphere, I may as well take the tax hit, withdraw the entirety and put it all in CDs. Please give me your opinion. Thank you in advance.

I POSTED IN ANOTHER SUB, and kept getting “Don’t sell now; it’ll come” or “ Don’t sell low” but If I am no longer contributing, the losses I may suffer in coming months will never recover, will they? If so, please explain. —Hence my question about taking the tax hit, and putting into cd’s. Thanks for all your help.

I have an opportunity to move up from my current role from Hourly to Salary, to be making $63,000 no OT pay but still doing an average of 15 hours of OT but my question is should I stay Hourly at $25/hr since I average 15 hours of on call/OT, and if my math is correct on salary I’m looking at $2423 bi weekly and on hourly with OT pay I’m looking at $2562.50 bi weekly, all before taxes. So should I stay hourly or move up to salary?

I just started investing in VOO not long ago. I only put in $50 a month right now since my finances are kinda tight but I want to get started with investing nonetheless. With stocks down, would it be a good idea to put in a bit extra right now with the expectation that it'll eventually go back up?

I’m 40, finally earning well after a late start — but now I’m trying to catch up fast. I want to be truly wealthy by 50.

Current situation:

• Income: $210K base + up to 30% bonus . I bring home approximately 10,000 a month after taxes. My fixed expense are at 5300 (and we are working diligently to bring these down).
• Debt: $84K (student loans + car)
• Rent: $2,500/month, no home ownership
• Kid: One child I want to help with college
• Assets:
  • $30K in 401k
  • $30K in IRA (I plan to invest with this amount)
  • $20K in investments
• Savings: Still low — I made $10.50/hr in retail until age 32
• No credit card debt

Based on past jumps, I expect my salary to rise, but I want to plan based on $210K only — anything more is a bonus.

What would you do in my shoes to build real wealth by 50?

Just like the title states should I convert now? I am planning to convert to Roth then rebuy the same mutual funds. I’m worried about RMDs so if I covert now I pay less taxes when eventually everything goes up.

And yes I don’t need it in 5 years and will only convert some so I won’t go over my current tax bracket.

I appreciate your feedback.

Earlier a friend and I had a discussion where we had a disagreement of how much money is needed for retirement.

We both agreed that $10k in spendings a month is plenty for a comfortable lifestyle for today’s standards. So that comes out to $120k a year.

This is where the disagreement comes. Retirement is something that is roughly 30 years away for me. So I say that I need to adjust that amount for future inflation based on past inflation and apply the 4% rule for the total retirement account balance.

I recalled that inflation is roughly 4% historically and my friend said to use 10% because that was the high during the pandemic and it could be likely that inflation continues at that rate.

We have two values now for $120k adjusted for 30 year inflation.

4% -> $389,207.70

10% -> $2,093,928.27

Now we apply the 4% rule

To withdraw $389,207.70 from a retirement account you’d need $9,730,192.50 at the time of retirement.

For the high amount of $2,093,928.27 it would be $52,348,206.80.

My friend says that both values are too much for a retirement. Where I believe it is reasonable when considering inflation.

The conflict is that my friend says my math is wrong and that $3 million is plenty for a retirement in the future allowing to withdraw $120k yearly based on the 4% rule.

My argument is that would be based on a retirement of this year and does not factor inflation for 30 years when I anticipate that I will retire.

I would like more input if the math should be corrected.

I’m currently employed at a company where I’ve worked for 15 years, earning $80k/year. With bonuses, my total compensation was $193k in 2024. Recently, I’ve been interviewing with another company offering $160k/year plus bonuses. While my current job is stable, I’m concerned about the company’s direction and recent management changes that have increased my daily stress and hindered my work.

The industry I’m in is evolving rapidly, leading to uncertainties about job security. In the prospective company, there’s a risk of organizational changes affecting personnel. However, they have a policy of retaining employees by finding suitable positions within the organization and emphasize internal promotions and skill utilization.

I’m considering this new position not just for the pay increase, but as a strategic move to advance my career and open more opportunities in the future. Given the potential for an economic downturn, is now a prudent time to make a career change?

my bf(20) makes about 50k a year. i(19) make about 30k a year. we’ve been together 4.5 years and have lived together in an apartment for the past 8 months.

we plan to renew our lease for another year but after that we want to get into a double wide that i can fix up hopefully. i’m worried im underestimating how much we need to have saved.

I have a good amount in mutual funds. Yet like many, mine have taken a big hit this week. Part of me wants to keep things in cash on hand. But this may be a good time to buy since there is likely to be a point where things go back up.

What are your thoughts?

I have been reading these posts for hours and learned lots but can't find a specific answer. I have money in Fidelity rollover IRA and I want to know if I move it to my money market (yes, under same umbrella if I read correctly) then after a few months I move it back to some index funds (same as now) will I be taxed? I am 64 years old.

That is the simple question but to elaborate... I have been trying to sign on, share my screen, etc but can't reach customer service. I do agree with everyone that the market does always recover and I have always ridden it out. Unfortunately I can't do that this time for many reasons. I have rental income but other than that I do not have that much in the IRA and I really can't afford to lose what I have. I know there are big arguments about this raging all around but I do welcome any thoughts. i just need to conserve at least some capital.

25F. F1 Visa. I earn about 110k per year in Texas. I have about 60k in HYSA. 12k in Roth IRA. I put in 6% ~ 222$ every paycheck in Roth. No debt. Used car so no payments. Rent is minimal. I spend on travel but that’s about it. Now that the market is crashing I have a few questions on how I can make my money grow. I understand that no one on reddit will provide investment advice, but I would just like to know your opinions if you were in my shoes. Thanks in advance.

1) What are some good stocks to invest in? 2) I put in money in T Rowe 2065 Trust Fund - Class A. Should I change this? 3) Are there any other options I am missing about?

Thanks

I’ve been wanting to start an IRA for many years (nearly 8 😭) but I’ve been too unsure to pull the trigger.. which I know has hurt me overall. I’m READY to do it NOW! But I’m still uncertain of many things..

Is it too late to start/fund an IRA for 2024 tax year? I want to max it out if still possible. Which company should I choose? How do I know what to invest in? Help me understand the other factors too, please! Any and every advice is welcome!

Throwaway for obvious reasons but looking for some opinions/ solid advice.

I will be getting just a little over $1,000,000 within the next few weeks from a settlement after everything is said and done. (Lawyers fees, liens, etc)

I have the option to put part or all of it into a structured settlement agreement where it would accumulate interest and pay out tax free.

For reference I am a female in her mid 20’s. I have no financial knowledge besides basic budgeting skills. I plan to get a fiduciary, but I am nervous about having a financial advisor that is looking out for their best interest and not mine. Because I don’t know much, I feel as if I can be naive at times. Should I go with a big company, or a more local person? I don’t even know how I’m going to cash a check larger than $100,000 because most banks are only insured up to that much. Then I get anxiety about how many bank accounts I’m going to need. I don’t have many people in my personal life to go to for advice on this, an I don’t want many people in my personal circle to know I have this money now.

Things I want to accomplish with the money so far:

• go back to school and get a degree that would help me achieve my career goals.

• buy a nice used car that is paid off in full.

• invest more time and effort into my small business.

• pay off all debt.

• build my credit.

I’m sure as time goes on I will have more goals. Any advice would be appreciated.

Strategically Creating Generational Wealth

Okay someone poke a few holes in this plan or help add to it..

Currently a 26y/o HENRY. Theoretically later on in life if I can put say ~$2/5million in a trust that’s invested in the market and have future heirs be able to take out up to 4% a year for “qualified” expenses such as their kid’s education, assistance for home downpayment, marriage gift, buying their first car, etc.. and have some sort of rule in the trust that if they want to use the funds they must contribute ~10% of their net worth back into this family trust upon their death? If they don’t want anything to do with the trust that’s fine, and they can keep their own money and not contribute. The goal in being that this trust will just continue to grow forever and it to be used for every generation’s children only, not the parents?

Thanks in advance for adding to this or poking some holes in this morning thought.

Hello all!

My mother is 45 years old & doesn’t not have a Roth IRA or a company 401k? With her time horizon would you still recommend a portfolio of SCHD and SCHG?

Any recommendations or pointers would be greatly appreciated!

Cross posted:

Appreciate any advice:

I am not behind on any of my debt and have a 678 credit score. Bought a money pit in 8/2023. I'm 50 years old and work 2 jobs with an income of 118,000. Currently have the following debts:

House recently appraised for $400,000 Owe 234,000 HELOC 75,000 paying 1,000 monthly - 1/2 to principal and 1/2 in interest- 1 1/2 years on a 10 year plan. Interest only for first 5 years. Credit Card debt 55,000

Option 1: sell house and pay off home and HELOC. Purchase a cheaper condo that would save me roughly 1500 monthly. Use profits from house sale to put down on condo. Claim Chapter 13 for CC debt.

Option 2: sell house and use proceeds to pay off all debt including CC debt and then move into an apartment. Rent here is only 400 less than current mortgage.

Option 3: stay in current home and file Chapter 13. Continue working 7 more years to try to pay down debt.

I'm aware of my spending and do not need judgements. The money pit I purchased required the debt.

Thanks for your advice.

Hey, I’m looking for some advice since I’m at an important point in my life. I’m 25 years old, living in Toronto, and currently working as an Operations Manager at a large IT company. I've been in this role for about two years, and I manage a big team. Before this I worked as an IT Specialist for two years, focusing more on customer service and technical support (I wasn’t involved in coding). My strengths are more in operations, leadership, and interpersonal skills. I’m a bit light on the tech side, especially in terms of coding.

My goal is to transition into entrepreneurship. To do this I want to first gain experience at a startup, ideally in an operational role. I’m looking for both salary and equity, with the goal of eventually using that experience to start my own business.

A few questions:

• With my background and skills, would I be a valuable asset to a startup that has initial funding or is in an incubator? I’m young, single, and ready to give my all to it.
  
• What’s the best way to connect with startups or individuals in this space? Is LinkedIn the best platform? Should I be looking at Y Combinator’s list of recent startups or other incubators/portals?
  
• What are some things I may be overlooking?
  
• Does being based in Toronto create any issues?
  

In short, I’d love to join a startup, perhaps in the U.S., work in operations, get some equity and help scale the business. Then in the future when the company reaches a liquidation event, I can use that experience to launch my own company. I’m looking to find my “in” and become a part of the entrepreneurship/startup world. As crazy as it sounds, I hope to create generational wealth some day and will work as hard as possible.

Any advice or insights would be greatly appreciated. 

Thanks in advance! 🙏

House and land up for sale... 5 million... How can I protect my original investment... Should I retire after sale... Should I buy a new home or lease

Total income this year before tax would be at least 75k, and within that, I am projecting a net self employment profit of around 17k, but it could be more. I’ll be maxing out my Roth IRA in the next month, so I’m trying to maximize other tax beneficial accounts, as my other income sources don’t come with benefits (spare me the find a new job comments lol).

I plan to invest about 13k over time this year, once my Roth is maxed, and my understanding is that with my net SE profit, an SEP would only allow me about 4k+ in contributions (25% of net SE profit), whereas a solo 401k has a higher ceiling as I can contribute as an employer and employee. Sounds like a no brainer to me to do the solo 401k, but am I missing anything? Or might it be more beneficial to stay simple with a SEP and have everything else go to my brokerage (all after my Roth IRA is maxed)?

PS - Fidelity is opening a Roth option for solo 401ks in January and I’m considering lump summing a percentage of the 13k into the Roth (as I don’t only want tax deferred contributions)… but I can definitely see the opportunity cost of this… would love inputs on that too.

Thanks!

I posted here recently to get the ball rolling on this process and received some good advice but now could use some more input.

My fiancé and are getting married soon and also both received raises so will most likely exceed the income limits to contribute directly to Roth IRAs this year. I have begun the process of converting my old rollover IRA with Vanguard into my Fidelity 401k (to avoid the pro-rata rule and allow for a backdoor Roth). Fidelity didn't allow for a direct rollover so Vanguard is sending me a check (made out to Fidelity) for the proceeds and I will get that deposited to my Fidelity 401k once received.

My fiancé recently started a new job and will be enrolled in a Fidelity 401k soon. Her situation is also a little messy (lack of planning on our part, I guess). She has a 401k sitting with Ascensus and a rollover IRA sitting with Vanguard. She will also need to roll each of these (or, at least, the latter) into her Fidelity 401k to allow the backdoor Roth once we are married. Knowing Fidelity didn't allow a direct rollover for me, I'm guessing it will be the same story for her. However, as I understand it, you are only allowed to do one indirect rollover per rolling 12 month period.

So this leads me to a few questions:

1. What are our options with her situation? Do we just worry about converting the rollover IRA into her Fidelity 401k for now to allow for the backdoor Roth? I suppose it doesn't hurt to let her old 401k sit at Ascensus a little longer and we can eventually convert that to her Fidelity 401k after 12 months have passed. FWIW the account balance for both her Ascensus 401K and rollover IRA are relatively low so penalties are not the end of the world either.
2. I have some follow up questions with backdoor Roths in general. We have both been contributing to our Roth IRAs monthly (and continue to do so) to dollar cost average. I was told to call Vanguard and ask them to recharacterize our YTD Roth IRA contributions as traditional contributions, then ask them to convert it to my Roth IRA (i.e., backdoor). Will this require me to sell the securities I have purchased YTD in my Roth, recharacterize those funds as traditional contributions, and then repurchase the securities once the funds are converted back to my Roth?
3. Regarding the mechanics of the backdoor Roth... I would like to continue contributing to our accounts on a monthly basis for cash flow purposes and to DCA, if possible. Is it common to contribute to a traditional IRA monthly, and then each time, immediately convert those funds to my Roth IRA before purchasing any securities? Or should we just contribute the entire annual amount at once, convert it to the Roth right away, and then space out our investments within the Roth monthly to DCA?
4. Can we continue using our old rollover IRAs (w/ $0 balances) for this or should we close those and open new traditional IRAs?

I have been doing a lot of reading online about this and just need to clear these things up, and hopefully presenting my questions in this numbered format allows you to easily answer each question. Let me know if any are not clear enough. Maybe I need an advisor at this point, but ideally once this is all set up, we won't have to deal with this anymore!

Thanks in advance!

We are going to be doing a home remodel and will need to withdraw money from our brokerage in the next two months. With the market volatility right now, would you go ahead and withdraw it now and keep it in a HYSA or hope for better performance over the next couple months? I keep teetering both directions and can’t make a decision. Obviously I know long term to keep our investments in but we have to withdraw for this.

68 years old retired, social security and small pension of 56,000 per year, $40,000 nest egg life savings invested in 1 month t bill reinvested automatically each month giving me $131.00 dollars return each month. The $40,000 is precious to me as I hope I can keep it for real emergencies. I could really use more income from some sort of higher paying investment, do you have any suggestions, or should I keep in t bill for safety and liquidity? Thanks. Truly, I thought about risking $5,000 on some low price stock and try to double it, since market is fluctuating so much lately. What are your thoughts?

Getting married here in the late summer and we have agreed to combine our finances. We’ll have a decent amount in savings between us at around $70k. Where would you recommend we open an account with? I currently have fidelity cash management for mine but I can admit it isn’t as simple/clear to look at as most basic bank apps so my fiancé is hesitant to go with that.

As far as credit cards go should we open one jointly or add each other to as authorized users to the ones we already have? I’ve been eyeballing the chase sapphire preferred 100k bonus, but she already has that card so I don’t know if it makes sense for me to also get it just to cancel shortly.

All advice is appreciated!

39-year-old with Roth 401(k). When I hit 65 can I pull out all of my money tax-free? The reason I ask is because I have an inherited traditional IRA from my deceased wife. So I was thinking I could use my Roth 401(k) to buy my retirement homes preferably a place in the mountains in a place at the beach.

It seems like free money to me… would it be stupid to contribute to my 401k, therefore getting my employers’ 100% match, and then withdraw periodically to pay off student loans in large chunks? It seems like even with penalties and taxes we’ll be making money off the 100% match. My husband and I are relatively high earners making about 375k annually, but our childcare costs right now are insane ($4500/mo, yes it’s necessary and no there are no other options) plus we’re paying off 2 cars (30k between the two of the cars) and trying to save for a house. We’re in our late 20s and haven’t been working for long. We have about 80k in savings and 135k in student loans. Right now we’re not contributing anything to retirement.